European private investment platform InfraVia has signed an investment term sheet with French rare earths recycling and separation specialist Carester.

This contemplated minority investment of InfraVia’s Critical Metals Fund would be made alongside US Rare Earth, a critical minerals company, as part of a rare earths industrial ecosystem project in Southern France that is supported by the French government.

Founded in 2019, Carester is a French leading specialist in rare earth recycling and separation technologies, with a strong focus on innovation and the development of more efficient, more environment-friendly industrial processes.

The company brings together decades of technical expertise, supporting the entire value chain from raw material sourcing through to high-purity rare earth oxides (REOs), critical for advanced manufacturing sectors including renewable energy, electric mobility, and electronics.

Carester’s flagship project Caremag is a cutting-edge magnet recycling and heavy rare earth separation plant located in Lacq in the South of France.

The facility, which is scheduled for commissioning later this year will recycle 2 000 t/y of magnets and refine 5 000 t/y of mining concentrate. This positions Caremag as Europe’s first large-scale rare earths recycling facility and the largest western producer of purified heavy rare earths.

The Caremag project benefits from the ongoing financial and strategic support of both French and Japanese public entities.

Leveraging Carester’s advanced processing capabilities, Caremag aims to deliver a reliable European supply of rare earth oxides essential for electric vehicles, wind turbines, and other strategic industries. The project is an integral part of Europe’s initiative to secure critical materials and foster industrial resilience in key technologies.

InfraVia will invest alongside USA Rare Earth, resulting in each of them holding about 12.5% equity interests in Carester.

The closing of the contemplated transaction is subject to the satisfactory completion of all confirmatory due diligence conditions as well as the negotiation and execution of definitive documentation.

“We are looking forward to supporting Carester’s next phase of growth, as it continues developing the Caremag facility and its cutting-edge green technologies. Carester has become a reference player in its field globally and will benefit from the growing demand for permanent magnets in Europe and beyond,” says InfraVia CEO Vincent Levita.

Next to Caremag in the Lacq region, USA Rare Earth is developing a large metal and alloy production facility through its subsidiary Less Common Metals Europe. This facility will process REOs such as produced by Caremag and transform them into metals and alloys necessary for the production of permanent magnets.

USA Rare Earth CEO Barbara Humpton says the transaction enhances USA Rare Earth's integrated rare earth value chain to the benefit of the Us and its partners. She believes the establishment of Europe's first rare earth oxide and metal-making platform will accelerate the realisation of a secure and sustainable transatlantic rare earth value chain. "Coupled with our capabilities in metal-making and magnet manufacturing, this can create a resilient, circular end-to-end ecosystem for these critical commodities."

Moreover, the creation of this broad rare earths processing and commercialisation platform will support France’s strategic priorities for industrial sovereignty and value chain resilience by securing critical resources and capabilities for advanced technologies and the energy transition.

“This investment and wider partnership will provide Carester with the capital needed for accelerating our development and will contribute to securing the company’s access to heavy rare earth materials. We are also proud to partner with USA Rare Earth and see their willingness to expand the rare earths processing platform of Lacq that Carester started into metal-making and magnet production capabilities,” says Carester CEO Frédéric Carencotte.